MANILA -- The Board of Investments (BOI) has so far registered two projects using inclusive business models, with combined investments amounting to PHP3.78 billion.
During the press conference of Inclusive Business Leaders’ Conference in Pasay City on Wednesday, Trade Undersecretary and BOI Governor Zenaida Maglaya named the two as the tourism project of Econorth Resort Ventures and the agribusiness project of Cargill, which were approved by the agency as of August 2018.
Cargill registered an investment worth PHP2.08 billion as a new producer of marinated cut chicken.
For its inclusive business model, it will engage some 300 low-income poultry farmers in Batangas where it will source its goods and services.
In the 2017-2019 Investment Priorities Plan (IPP) of the BOI, the government can provide up to five years of income tax holiday (ITH) to agribusiness projects with inclusive business model, which means at least 25 percent of total cost of goods and services are sourced from registered or recognized micro and small enterprises (MSEs); engaging 300 farmers, fisherfolk, suppliers, or individuals in their value chain, of which, at least 30 percent are women; and providing at least 20 percent increase in average income of individuals engaged in the business.
Earlier, BOI reported that it registered the PHP1.7-billion eco-tourism project of Ayala Group’s Econorth Resort Ventures, Inc. in El Nido, Palawan.
Under the IPP’s tourism guidelines, at least 25 direct jobs shall be created by the project, of which, 30 percent are women.
The same guidelines for cost of goods and services as well as increase in average income shall apply for tourism projects with inclusive business model.
BOI has been promoting the inclusive business concept to promote entrepreneurship with wider social benefits, by engaging low-income communities in large companies’ value chain.
Maglaya said inclusive business plays a critical role in the 2017-2022 Philippine Development Plan, wherein the government targets to bring down the poverty rate at 15 percent by 2022.
“[I]nclusive business development is identified as one of the strategies to get closer to the attainment of the AmBisyon Natin 2040… The development of inclusive business models and social enterprises to better engage micro and SMEs (small and medium enterprises will help lay down a solid foundation for more inclusive growth, a resilient society, and globally competitive economy,” said Maglaya.
“Inclusive business or IB, as a private sector’s approach of integrating small and community-based enterprises at core operations of economies, increases the potential of companies to contribute to socioeconomic growth while staying commercially viable,” she added. (PNA)
